Real Property Reports
Real Property Report vs Title Insurance
What is a Real Property Report?
A Real Property Report is an accurate representation of the improvements
on your property. A Real Property Report is the one and only way
to know the true legal boundaries of any property.
To view an actual
RPR click here (Requires Adobe
Acrobat - PDF 229KB)
What is title insurance?
Title insurance simply insures the owner against any conflicts in the Real Property Report. For example: if your neighbour had a Real Property Report done for his property and discovered that your fence was in fact on his property the Insurance would cover the costs of rectifying the issue.
What are you selling?
A Real Property Report truly and accurately depicts exactly where all improvements are located on the property. It identifies any encroachments on other properties and/or conflicts with local bylaws. A Real Property Report with a compliance stamp is a "picture in time". Title insurance avoids this "taking a picture in time" and problems/issues are not identified.
What are you buying?
Without a clear picture and measurement of the actual dimensions of a parcel of land or citing of improvements it is impossible to know exactly what the vendor is selling or what the purchaser is buying. Title insurance leave any problems to be inherited and fixed at a later date.
How are problems solved before a sale?
If conflicts are revealed on the Real Property Report it is usually the responsibility of the vendor to resolve those conflicts. Often a simple agreement with the municipality and/or holder of the encroachment is all that is necessary.
What happens when problems are masked by title insurance?
If you have purchased a property covered by title insurance instead of a Real Property Report any conflicts are now yours to solve. You could end up in a situation of not owning what you thought you did and having no choice but to settle for what you really own.
Title insurance is not unlimited coverage. If you choose to go this route make sure you read your contract thoroughly and know what is and isn't covered - additional insurance may be needed.
Is the vendor or Realtor off the hook?
No party to any real estate transaction is off the hook if they deliberately covered up any deficiency that they had knowledge of. The title insurance company and/or the new legal owner can decide to initiate legal action if they feel that any party failed to make full disclosure.
A Real Property Report is part of full disclosure!
What does it cost?
A Real Property Report will initially cost more than title insurance. It is better protection and there is a larger amount of work involved in preparing it. Title insurance, while initially cheaper, usually only lasts as long as the term of your mortgage, meaning you will have to pay to renew it several times over the amortization period - eventually costing you much more.
It's about peace of mind!
The purchase of property is a major expense. Knowing what a vendor is selling and what a purchaser is buying brings peace of mind - no surprises - no hidden costs - no fine print - just peace of mind. It's your choice.